Who Represents You at a Texas Model Home? SB 1968 and the Builder Sales Office (2026)
- 1 day ago
- 8 min read
Who Represents You at a Texas Model Home? SB 1968 and the Builder Sales Office
Does the person in a Texas model home represent the buyer?
No. The representative in a builder's sales office works for the builder. Texas Senate Bill 1968, effective January 1, 2026, repealed subagency and requires a license holder to have a written agreement with a buyer before showing residential property. But a builder's own employee may be exempt from real estate licensing entirely, so the rules that govern a resale showing are not automatically the rules governing the sales office.
Key facts
Texas SB 1968 took effect January 1, 2026 and amended the Texas Real Estate License Act, Occupations Code Chapter 1101.
SB 1968 repealed subagency, the default arrangement under which an agent could work with a buyer while legally owing loyalty to the seller.
Under SB 1968 a license holder must enter a written agreement with a prospective buyer before showing residential property, or before making an offer if no property will be shown.
That written agreement is not required to be a full buyer representation agreement, though it can be.
A license holder may show property without representing the buyer only if there is no agreement to represent and the license holder gives no advice or opinions about the property or the transaction.
Texas does not permit dual agency.
Occupations Code Section 1101.005 exempts certain people from licensing. TREC states that a license is not required to sell a builder's new houses if the person is an employee of the builder; independent contractor status is not enough.
TREC states that agency disclosure and statutory information requirements apply to new home sales unless an exception applies.
What changed on January 1, 2026
For most of the history of Texas real estate, a buyer could tour homes, ask for opinions and get help writing an offer without ever signing anything. In many of those situations the agent was, in legal terms, a subagent of the seller. The buyer experienced the relationship as representation. The statute did not describe it that way.
Senate Bill 1968 changed that. It repealed subagency from the Texas Real Estate License Act and required a license holder to enter into a written agreement with a prospective buyer before showing residential property, or before making an offer on the buyer's behalf if no property will be shown. Failure to do so became grounds for disciplinary action against the license.
The bill also preserved a narrow path for showing without representation. A license holder may open a door without representing the person walking through it, but only where there is no agreement to represent and the license holder offers no advice or opinions about the property or the transaction. The moment an opinion is offered, that path closes.
Nearly everything written about SB 1968 since has described it as a resale rule: sign before you tour. That framing is correct as far as it goes. It also stops short of the place where most new construction buyers actually make first contact.
Why the sales office is a different room
A resale showing has a structure the statute recognises. There is a listing broker, a buyer, and now a required written agreement before the tour.
A model home visit has a different structure. The seller is the builder. The property is the builder's inventory. The person at the desk is retained by the builder to sell that inventory. Nothing about that arrangement is improper, and builder sales staff are frequently among the most knowledgeable people in the community about the product they sell. But their principal is the builder, and their duty runs to the builder.
The question is not whether the sales representative is good at the job. It is which rulebook is open on the desk.
The licensing exemption most buyers have not heard of
SB 1968 governs license holders. The written agreement requirement, the repeal of subagency, the disciplinary consequences: all of it attaches to people who hold a TREC license. Whether it reaches the person in a particular sales office therefore depends on a prior question, which is whether that person holds a license at all.
Texas exempts certain people from real estate licensing under Occupations Code Section 1101.005. One of those exemptions covers employees of a builder. TREC's own published guidance states that a person does not need a license to sell a builder's new houses provided the person is an employee of the new home builder, and that being an independent contractor is not sufficient for the exemption to apply. TREC Rule 535.34 sets out how an employment relationship is evaluated.
In practice, DFW builders staff their sales offices in different ways. Some use licensed agents. Some use employees relying on the exemption. Some use both across different divisions or communities, and the arrangement is not always evident from a business card or a name badge.
The practical consequence is worth stating plainly. The protections that tightened around resale showings on January 1, 2026 do not automatically follow a buyer through the door of a model home, because they may not be the operative rules in that room.
This is a structural observation about which statute applies where, not a claim about any individual, any builder, or the quality of anyone's work. TREC maintains a public license lookup for anyone who wants to confirm license status for themselves.
What the disclosure rules do and do not reach
TREC has stated that the agency disclosure and statutory information requirements apply to new home sales unless an exception applies. The Information About Brokerage Services form is the disclosure most buyers encounter. It is not a contract and it does not create representation. It describes what the different roles mean.
There are carve outs. Under Section 1101.558(c) of the Act, the IABS is not required for a residential lease of less than one year where a sale is not contemplated, where the meeting is with a party already known to be represented by another license holder, or where the communication takes place at an open house and concerns that same property.
Two consequences follow for a new construction buyer. First, a disclosure form is a statement of role, not a grant of representation. Receiving one does not mean anyone at the table is working for the buyer. Second, if the person is exempt from licensing, the disclosure obligations that attach to license holders are a different question again.
None of this is a reason to skip model homes. It is a reason to know the answer to a simple question before walking into one.
Registration and the order things happen in
Most production builders in DFW operate a registration policy. It governs whether a buyer's agent is recognised in the transaction and, in many cases, it turns on when the agent first appeared rather than on what the buyer intended.
Registration policies are set by each builder, not by statute, and they differ. Some require the agent to accompany the buyer on the first visit. Some accept registration in advance. Some allow a window afterward. Some do not. The policy is a term of the builder's own programme, and it can be changed by the builder.
What is common across most of them is that the sequence matters and it runs one way. A buyer who tours first and engages representation later may find the question already settled. That is not a rule anyone is hiding; it is simply a detail that sits in a policy document rather than in the marketing.
The related mechanics live on separate pages: what the builder's own contract does and does not contain is covered in the Texas builder contract guide, and district assessments that follow the address rather than the house are covered in the DFW community district lookup.
Six questions and where each answer comes from
Question | Where the answer comes from | Why it matters |
Does the person in the sales office hold a TREC license? | TREC's public license lookup | Determines whether SB 1968's written agreement rules apply to that person at all |
Whose interests does that person represent? | The disclosure provided, and the employment relationship behind it | The builder is the principal either way; the disclosure states the role, it does not change it |
Do I have a written agreement with someone who represents me? | Your own signed agreement | Since January 1, 2026 this is what representation rests on in Texas |
What is this builder's registration policy, and what is the deadline in it? | The builder's published policy, community by community | Set by the builder, not by statute, and the sequence generally runs one way |
Which contract form governs this purchase? | The builder's own document, not the TREC promulgated form | Deposit, delay, change order and dispute terms are drafted by the seller's side |
What assessments attach to this specific address? | The recorded district and association documents for the lot | These follow the address, and two lots in one community can differ |
Questions buyers ask
Do I need my own agent to buy new construction in Texas?
No law requires it. The builder's representative works for the builder, so a buyer without separate representation is unrepresented in the transaction. Whether that matters depends on how much of the process a buyer wants to handle alone.
Does SB 1968 apply to builder sales representatives?
It applies to TREC license holders. A builder's sales representative who is an employee of the builder may be exempt from licensing under Occupations Code Section 1101.005, in which case the licensing statute's requirements are not the operative rules for that person.
Is the builder's sales representative allowed to give me advice?
They can and routinely do discuss the product, the community and the process. The point is not whether advice is offered but whose interests the person offering it is retained to serve.
Does signing a disclosure form mean someone is representing me?
No. The Information About Brokerage Services form describes what the roles mean. It is not a contract and it does not create representation.
Can I bring an agent in after I have already visited the model home?
Sometimes. It depends entirely on the individual builder's registration policy, which is set by the builder and varies by company and sometimes by community. It is worth confirming before the first visit rather than after.
Does new construction use the standard TREC contract?
Generally no. Texas resale transactions use a promulgated TREC form. Builder transactions typically use the builder's own document.
Who pays the buyer's agent in a Texas new construction purchase?
In most DFW new construction transactions the builder pays the buyer agent's compensation. The arrangement is set by each builder and should be confirmed for the specific community. See new construction buyer representation in DFW.
Is any of this a reason not to buy new construction?
No. New construction is a sound choice for a large number of DFW buyers and represents a substantial share of the market. Understanding who is on which side of the table is preparation, not a warning.
Related guides
About the author
Nitin Gupta, Broker Associate, Competitive Edge Realty LLC. CRS, GRI, CLHMS, ALHS, PSA, ABR, SRS, SRES, e-PRO, MRP, TRLS, TRPM. TREC License #0668540. 480+ closed transactions and more than 300 new construction closings across Dallas-Fort Worth. Named D Magazine Best REALTOR in 2020, 2023 and 2024. Service in English, Hindi, Punjabi, Urdu and Gujarati.
Sources: Texas Senate Bill 1968, 89th Legislature, effective January 1, 2026. Texas Occupations Code Chapter 1101, including Sections 1101.002, 1101.005 and 1101.558. Texas Real Estate Commission published guidance and Rules 535.5 and 535.34. Reviewed August 2026.
Call us at 469-269-6541 for more information about Frisco real estate!
FIND A LUXURY HOME IN FRISCO, TEXAS WITH NITIN GUPTA, BROKER ASSOCIATE, REALTOR®.
When purchasing a luxury home in Frisco, Texas, it's essential to consider factors such as location, architectural style, security, and amenities to ensure the home meets both lifestyle and investment needs. By selecting a property in a prestigious neighborhood with numerous amenities and security measures, buyers can ensure they're making a valuable and rewarding investment in the vibrant Frisco market.
For those looking to invest in luxury homes in Frisco, Texas, Nitin Gupta is an expert real estate professional ready to assist. Known for his extensive experience, market insights, and numerous awards, he is committed to finding his clients the best properties in the area.
Contact Nitin Gupta at 469-269-6541 or send a message today to explore exclusive listings and secure your ideal luxury residence in one of Frisco's elite communities.
